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Cradlepoint is seen as the market leader in the establishment of local mobile networks for businesses: It has been 4G, but now it is increasingly 5G, the new ultra-fast mobile technology. Anyone who wants to work technically says it is wireless WAN Edge.
– A current example is if you want to establish a testing center for covid-19, which requires a secure connection for several different mobile devices. The police and fire brigade can use it, but also a fast food chain that wants to connect its various stores. It works as both a temporary and permanent solution, says CEO Börje Ekholm.
Ericsson has collaborated for more than a decade with Cradlepoint, which has 650 employees and last year had sales equivalent to 1.2 billion SEK. Ericsson now takes $ 9.7 billion from its coffers and makes it a subsidiary, but retains the brand.
“If 4G was primarily a consumer solution, then 5G is about business,” says Börje Ekholm, CEO of Ericsson.
Photo: Magnus Hallgren
– This is a market that is growing between 25 and 30 percent, and we intended to grow faster than that. We will make money with Cradlepoint, but also by being able to sell more of our mobile systems when the network traffic increases.
How important is the acquisition to Ericsson as a company?
– Our core business is still selling mobile network solutions. But if 4G was primarily a consumer solution, then 5G is about business. Cradlepoint is an important component to meet that development, says Börje Ekholm.
He was soon CEO for four years and led a revamp that means the company showed profits again last year, but also had to endure paying $ 10 billion in fines to US authorities for corrupt businesses. Now you are ready to buy:
– Yes, there will be more purchases. I belong to those who believe that you must first have your house in order. Now we have the strength to act, we have already said that acquisitions are an important part of our strategy, says Börje Ekholm.
Also read: “We are the best in 5G”
Ericsson builds 5G equipment, with 5G
